| October 20, 2025

Mexican Consumers Gravitating Towards Higher Speed Fiber Tariffs

Mexican ISPs look to consolidate their positions following significant network investment

The Mexican market has witnessed a rapid transition to fiber over the last few years, led by market incumbent Telmex, as well as challengers Totalplay and Megacable. While Telmex still holds a sizable lead on its rivals in terms of market share of broadband connections, it is facing intense competitive pressure, with both Totalplay and Megacable seeing sustained increases in net additions, based on Speedtest samples.

Our analysis of Ookla Speedtest data reveals a marked transition, particularly among Totalplay’s customer base, towards adoption of higher speed tariffs in excess of 100 Mbps. We also see that fiber connections help deliver improved user experience for key use cases such as online gaming and video calling. However, Wi-Fi remains a bottleneck in the home, with a significant proportion of Mexican households still using legacy Wi-Fi customer premises equipment (CPE).

Key Takeaways

  • Positive net broadband additions for leading fiber ISPs. Totalplay and Megacable are consistently gaining customers, up 3.3% and 2.8% respectively, based on migration of Speedtest users between the ISPs in 1H 2025. Telmex followed with 1% growth, while izzi, which relies more on its older hybrid-fiber coax (HFC) network, has experienced significant user churn over the last several quarters.
  • Leading fiber ISPs are delivering superior speeds and quality of experience. While Telmex continues to lead the market based on broadband connections market share, its rivals outpace it on key performance indicators. Totalplay recorded a median download speed of 160.48 Mbps in 1H 2025, followed by Megacable with 94.08 Mbps, Telmex with 78.00 Mbps, and izzi with 74.50 Mbps. Greater adoption of faster fiber services among its customer base also helped drive leads for Totalplay on gaming latency, where it recorded a median of 66 ms, followed by Megacable with 77 ms, both ahead of Telmex with 82 ms.
  • Consumers are migrating to faster speed tiers, especially on networks supporting faster performance. In Chihuahua, over half of Totalplay’s customers (51.5%) receive speeds over 100 Mbps based on Speedtest data. The provider saw its share of users recording speeds in excess of 300 Mbps grow significantly, from 11.7% in Q3 2024 to 19.2% in Q2 2025. By contrast, Telmex and izzi had more than 70% of users recording less than 100 Mbps, of which, a majority experienced less than 50 Mbps.
  • The benefits of fast fiber are often limited by outdated in-home Wi-Fi CPE. Many users cannot achieve the full speed of their broadband plan because of their Wi-Fi routers. This issue is most pronounced for customers of izzi and Telmex; in Chihuahua, 56% of izzi customers and 46% of Telmex customers use Wi-Fi 4 or older, compared to just 33% for Totalplay.
  • Network quality directly impacts the experience of latency-sensitive applications like online gaming. Fiber providers hold a distinct advantage for gamers. Totalplay delivered the lowest gaming latency at 66 ms in Chihuahua, followed by Megacable with 77 ms, and Telmex with 82 ms. Izzi lagged behind with a median latency of 114 ms, due to reliance on its hybrid-fiber coaxial (HFC) network. For reference, NVIDIA recommends a latency to its data centers of less than 80 ms, for its cloud gaming service GeForce NOW.
  • Net promoter scores (NPS) are remarkably consistent across all major ISPs. For the lowest speed tier (0-50 Mbps), every provider recorded a deeply negative NPS, with an average of -41. In stark contrast, sentiment becomes strongly positive for the highest speed tiers. For customers on plans over 300 Mbps, NPS scores climb to +49 on average. This demonstrates that faster connectivity is not just a technical specification but a key driver of a more positive and valued customer experience.

Mexico lags regional peers in median download speeds

The Mexican broadband market remains heavily weighted towards former incumbent Telmex, which is nearing the end of a transition from DSL to fiber. GSMA Intelligence data shows that Telmex had a market share of broadband connections of just under 40% as of Q4 2024. Telmex competes against three other major ISPs with market shares of close to 20% each— Totalplay, a pure fiber ISP, Megacable, a cable ISP rapidly migrating its user base to fiber, and izzi, a cable ISP which continues to rely heavily on its HFC network.

Despite a relatively high market concentration, the Mexican fixed broadband market has undergone a rapid transformation, driven by aggressive investment in fiber optic infrastructure. Telmex has been central to this by migrating its user base from copper to fiber.  During its Q2 2025 results, Carlos García Moreno, financial director of América Móvil, said that 91% of Telmex users were on fiber, up from 67% just two years ago.

Competition has been fierce, with Megacable also expanding its fiber optic network, maintaining a capex-to-revenue ratio in excess of 30% in 2024, and while this has fallen in 2025, it still remains above 20%. Totalplay is in a similar position, spending in excess of 20% of revenues on capex during 2025, and while it is not focused on further geographic expansion, it continues to reinforce its lead on network speeds in the market, recently launching a symmetrical 10 Gbps rate plan complete with a Wi-Fi 7 CPE, taking advantage of the performance supported by the latest generation of Wi-Fi technologies.

This race to deploy fiber in the last mile in Mexico is helping drive faster median network speeds, however Mexico continues to lag behind many regional peers. It placed 68th globally on the Speedtest Global Index for August 2025, well behind Chile which placed 2nd, Peru in 20th, Brazil in 28th, Colombia in 30th, and Argentina in 56th.

A rising tide of fiber across Mexican cities

Across all ISPs combined, Mexican median download speeds increased by 18.78 Mbps year-on-year, to reach 91.55 Mbps in Q2 2025, fueled by the continued migration to fiber. Upload speeds increased at a faster rate, up 33.73 Mbps to reach 72.50 Mbps, thanks in part to Totalplay’s move to offer symmetrical speeds as covered in a previous Ookla Research article. With Mexican cities the focal point for fiber expansion in the market, we examined ISP performance across a selection of cities – Chihuahua, León, Mexico City, and Puebla, to show the impact of this fiber rollout:

  • Mexico City: Totalplay cemented its lead, with its median download speed increasing significantly from 120.18 Mbps in Q2 2024 to 198.62 Mbps in Q2 2025. Megacable also saw a significant jump to 96.28 Mbps, while Telmex and izzi posted more modest gains.
  • Chihuahua: Totalplay again demonstrated the most dramatic growth, with speeds increasing from 93.79 Mbps to 142.27 Mbps year-on-year, while Telmex and izzi also both made gains.
  • León: The trend continued, with Totalplay’s median speed rising to 138.16 Mbps and Megacable and Telmex both seeing year-on-year improvements.
  • Puebla: Totalplay again recorded the highest median download speed of any provider, reaching 163.79 Mbps in Q2 2025, while Megacable and Telmex both saw more modest improvements.

Median Download Speed by ISP, Select Mexican Cities
Speedtest Intelligence, Q2 2024 – Q2 2025, Mbps

Analysis of speed tiers shows user migration to faster rate plans

Part of the challenge for ISPs is convincing users to upgrade to faster broadband rate plans. Broadband price plans typically start at around 350-400 MXN per month (approximately USD $20), with both Telmex and Megacable offering the lowest priced packages for 50 Mbps, while izzi offers a 30 Mbps service at a similar price point. Totalplay on the other hand has sought to differentiate on performance, with its lowest tier at least double that of its rivals, at 100 Mbps, but for this it charges MXN 529 (closer to $30).

Chihuahua

Examining the spread of Speedtest samples across different speed brackets, shows that a much greater share of Totalplay (51.5%) customers in Chihuahua opt for faster connections (in excess of 100+ Mbps), compared to Megacable (30.2%), Telmex (27.4%), and izzi (21.6%).

There were only minor changes for both izzi and Telmex, based on Q3 2024 vs. Q2 2025 data. izzi shows a minor uptick in the share of users with speeds between 50-100 Mbps, at the expense of the higher speed tier of 100-300 Mbps. Telmex has a slightly more positive outcome, with a decline in its share of users with the slowest speeds (0-50 Mbps), coupled with a rise in those with speeds of 50-100 Mbps, reflecting its continued migration of users from copper to fiber. Totalplay and Megacable recorded more significant swings among their user bases. For Megacable, we saw a decline in users with speeds between 100-300 Mbps, while the share of users with 300+ Mbps, as well as 0-50 Mbps and 50-100 Mbps all increased. Totalplay saw the most positive outcome among the ISPs, with a just under 5% increase in users with speeds between 100-300 Mbps, while its share of users with speeds in excess of 300 Mbps ramped up strongly from 11.7% to 19.2%.

Chihuahua – sample share by speed tier
Speedtest Intelligence, Q3 2024 – Q2 2025, Mbps

León

For León, we compared Telmex, Megacable and Totalplay, but excluded izzi, which did not have sufficient samples to be included. Here we see better performance from Megacable, with 48.9% of its users recording speeds of 100 Mbps or greater in Q2 2025, and with its share of samples with speeds between 100-300 Mbps and in excess of 300 Mbps both picking up, largely at the expense of samples between 0-50 Mbps. Totalplay was a similar story – recording a sizeable decline in samples between 0-50 Mbps, and with both 100-300 Mbps and 300+ Mbps tiers seeing sample share grow strongly.

Telmex, while again exhibiting more marginal changes in its user’s distribution by speed tiers, did record a positive trend of a decline in samples between 0-50 Mbps, with users recording 50-100 Mbps, and 100-300 Mbps both increasing.

León – sample share by speed tier
Speedtest Intelligence, Q3 2024 – Q2 2025, Mbps

Legacy Wi-Fi remains a key limiting factor in the market

While many users subscribe to faster fiber rate plans, their real-world experience can be limited by another factor: the quality of their in-home Wi-Fi network. Data from Q2 2025 shows a significant number of users are still on legacy, slower Wi-Fi standards (Wi-Fi 4 and 5), which can prevent them from realizing the full benefit of fiber broadband performance.

This issue is more prevalent among Telmex and izzi customers. In Chihuahua, 56% of izzi customers and 46% of Telmex customers were using Wi-Fi 4 or worse, compared to just 33% for Totalplay and 38% for Megacable. Conversely, customers of Totalplay and Megacable have much greater access to more modern Wi-Fi CPE. 24% of Totalplay customers in Chihuahua used routers supporting Wi-Fi 6, 6E, or 7, compared to just 2% of izzi customers. A similar pattern is observed in León, where 26% of Totalplay customers utilize more modern Wi-Fi equipment, followed by Megacable with 22%, both far outpacing Telmex with just 6%.

Samples by Wi-Fi generation, Chihuahua and León
Speedtest data, 1H 2025

Advanced fiber providers offer QoE performance gains

For demanding applications like online gaming, raw speed is only part of the equation; low latency is paramount for a smooth, responsive experience. Here, the advantage of advanced fiber providers becomes even clearer.

Totalplay delivered the lowest gaming latency in both Chihuahua (66 ms) and León (81 ms), placing it a step ahead of its peers. Megacable also performed well with 77 ms and 91 ms, respectively. In contrast, izzi’s HFC network recorded significantly higher latency, measuring 114 ms in Chihuahua and 127 ms in León, a level that can negatively impact the gameplay for more immersive, latency sensitive games.

Game latency by ISP (ms), Chihuahua and León
Speedtest Intelligence, Q2 2025

This performance advantage extends to other real-time applications, such as video calling, which requires a low latency and jitter for a seamless experience. In Chihuahua, Totalplay consistently provided lower latency for video calls than its competitors in both Q3 2024 and Q2 2025, while both Megacable and Telmex recorded improvements of approximately 10ms. In León, the improvements were less pronounced, with Megacable and Totalplay recording similar latencies, while Telmex was marginally behind, but showing improvement.

Video calling latency by ISP (ms), Chihuahua and León
Speedtest Intelligence, Q3 2024 – Q2 2025

Market impact: performance driving customer acquisition

The superior network performance offered by leading ISPs has a direct and measurable impact on customer satisfaction, which in turn drives customer loyalty. When we analyze customer sentiment using Net Promoter Score (NPS), a clear and powerful trend emerges: customers on higher-speed tiers consistently report greater satisfaction.

This trend is remarkably consistent across all major ISPs. For the lowest speed tier (0-50 Mbps), every provider recorded a deeply negative NPS, with an average of -41. In stark contrast, sentiment becomes strongly positive for the highest speed tiers. For customers on plans over 300 Mbps, NPS scores climb +49 on average. This demonstrates that faster connectivity is not just a technical specification but a key driver of a more positive and valued customer experience.

Net Promoter Score (NPS) by speed tier
Speedtest data, Mexico (all providers combined, 1H 2025)

Ultimately, customer satisfaction—or lack thereof—is a strong predictor of customer loyalty. When this satisfaction data is viewed alongside customer migration patterns, the market dynamics become even clearer. Looking across the Mexican market, net flow analysis of Speedtest users between Q3 2023 and Q1 2025 shows a consistent pattern of customer churn away from izzi, which posted losses of 11.1%, 11.5%, and 10.2% across the three periods analyzed. Izzi, which has not pursued fiber in the same way as the three other ISPs, is clearly seeing customers opt for more advanced fiber alternatives in the market, with Megacable, Telmex, and Totalplay net recipients. Of the three predominantly fiber ISPs, Totalplay and Megacable consistently recorded net customer gains.

Net flow of Speedtest users, Mexico
Speedtest data, H1 2024 – H1 2025

Market outlook: pressure on ISPs to cater to demand for improved performance

The competitive landscape in Mexico’s fixed broadband market will continue to be defined by the performance of fiber networks. As fiber deployments continue to mature, ISPs will have to carefully manage their customer bases, looking to balance speed tier upgrades with consumer price elasticity. They should not ignore key quality of experience indicators, and other performance bottlenecks such as outdated Wi-Fi CPE, all of which can impact consumer sentiment, and churn. Addressing this challenge by pairing advanced fiber networks with modern Wi-Fi 6 or 7 CPE—as Totalplay has begun to do —will be critical for monetizing network investments and meeting the expectations of a consumer base that is actively migrating to faster, higher-quality service tiers.

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Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.

| October 28, 2025

AT&T’s New FWA Strategy is Playing Out in Houston

Fortified with additional spectrum from EchoStar, AT&T is battling Comcast and other internet providers in Houston with its fixed wireless access (FWA) service.

Like Verizon and T-Mobile, AT&T is now putting more emphasis onto its FWA business. As part of that effort, AT&T agreed in August to purchase $23 billion worth of spectrum from EchoStar, including an average of 30 MHz of nationwide 3.45 GHz midband spectrum.

And AT&T can activate that spectrum relatively quickly – the operator can add EchoStar’s spectrum into its network through a software upgrade to its existing 5G equipment.

AT&T’s FWA strategy is crystalizing in Houston, Texas, where AT&T also operates an extensive fiber network. AT&T’s efforts there may pose a competitive threat to other fixed internet operators in the Houston market, including Xfinity provider Comcast, Ezee Fiber, and others.

Key takeaways:

  • Houston is a prime battleground for cable, fiber, and FWA. According to Ookla Speedtest Intelligence® data, AT&T’s median FWA download speed in Houston was 106.40 Mbps in September 2025, and its median upload speed during that period was 7.41 Mbps. That’s slower than the fiber offerings from AT&T and the cable offerings from Comcast in the city.
  • AT&T’s midband spectrum holdings (C-band and 3.45 GHz) in Houston stand to grow from 120 MHz to 150 MHz, a 25% increase, thanks to the addition of EchoStar’s 3.45 GHz spectrum licenses. More spectrum typically results in additional network capacity and faster speeds.
  • AT&T is using FWA to expand beyond the reaches of its fiber network in Houston, thereby competing with other fixed internet providers in Houston suburbs like Conroe and League City.

AT&T has reignited its FWA business

AT&T is no stranger to FWA. In 2015, AT&T agreed to offer internet connections in 1.1 million rural locations across 18 states as part of the U.S. government’s CAF II program. AT&T used 4G LTE-based FWA to reach some of those locations, offering speeds of at least 10 Mbps down and 1 Mbps up (which met the FCC’s broadband benchmarks at that time).

More recently, AT&T has re-engaged with FWA in a significant way via its 5G network. The company launched its 5G-powered Internet Air FWA product in August 2023, and has seen significant customer growth since.

AT&T Quarterly FWA Net Customer Additions
Operator reports | 2023-2025

However, AT&T has not pursued the FWA market as aggressively as its rivals. AT&T in the second quarter of 2025 passed the 1 million FWA customer milestone, while T-Mobile counted around 7.3 million FWA customers and Verizon said it had around 5.1 million FWA customers. Importantly, FWA speeds across all three providers have been increasing, according to Ookla findings.

Collectively, the FWA services from AT&T, T-Mobile, and Verizon have had a major impact on cable operators in the U.S. T-Mobile, Verizon, and AT&T added a combined 3.7 million FWA customers during 2024, while the nation’s top cable companies collectively lost roughly 1 million broadband subscribers.

AT&T officials have said the operator plans to use FWA in three situations:

  1. Outside of AT&T’s fiber footprint, thereby extending the reach of its converged fixed wireless / smartphone service.
  2. Inside its legacy copper network footprint. AT&T is working to decommission its copper network, and it will offer fixed wireless services to customers who will not receive a fiber alternative.
  3. In its planned fiber footprint. AT&T currently covers around 30 million U.S. locations with fiber, but it hopes to expand that to a total of 60 million locations by the end of 2030. The company plans to use FWA as an interim anchor while it builds fiber to those remaining locations.

That overall strategy aligns with AT&T’s efforts to sign up customers to multiple services – those customers are the most valuable, according to AT&T, in that they have the lowest churn profiles and highest lifetime values. In the third quarter of 2025, AT&T said that more than 41% of its fiber customers also subscribed to its mobile service, and more than half of its Internet Air FWA subscribers also subscribed to AT&T’s mobile service.

Houston is an FWA battleground

Sunit Patel, the CFO of U.S. cell tower operator Crown Castle, described Houston as an ideal location for fixed wireless services, particularly at the boundary between suburban and rural areas. “That’s usually … a good area where fixed wireless will work well,” he said at a recent investor conference.

Houston is also one of the fastest growing cities in the U.S., making it a prime market for internet service providers on the hunt for more customers. According to Rice University’s Kinder Institute for Urban Research, the Houston metro area added over 1.5 million new residents between 2010 and 2023, second only to the Dallas-Fort Worth metro area in terms of overall growth. During that same time period, the Chicago metro area lost about 210,000 residents, Los Angeles’ population dipped by about 40,000 people, and the New York metro area added about 580,000 residents.

According to Speedtest Intelligence, AT&T’s FWA median download speeds trail those of fiber and cable providers in Houston. AT&T Internet Air median download speeds reached 106.40 Mbps in September, while its median upload speeds hit 7.42 Mbps. Meanwhile, Comcast’s median cable download speeds in Houston clocked in at 292.81 Mbps and its median upload speeds were 41.49 Mbps in September (Comcast has been working to improve its upload speeds in Houston and elsewhere, according to recent Ookla findings). AT&T’s median fiber download speeds in the city were 366.56 Mbps and its median upload speeds were 306.90 Mbps. And Ezee Fiber’s median download speeds reached 545.39 Mbps and its median upload speeds were 464.46 Mbps. It’s worth noting that many internet service providers offer different tiers of service, with faster plans available at a higher price.

According to Speedtest Insights®, AT&T’s fixed wireless business is spread throughout the greater Houston metro area:

Map of AT&T FWA Median Download Speeds in Houston, TX

This is likely due to the inherent limits of FWA on a 5G network. FWA is deployed in areas with excess 5G network capacity to prevent overloading. Dense accumulations of FWA customers might overload portions of that 5G network, affecting both FWA and smartphone customers.

This is much different from a fiber network design, which typically has plenty of capacity. As a result, fiber operators tend to load as many customers as possible onto their networks, regardless of user density. The more, the better. After all, each foot of an underground fiber network costs a median of $18.25 to build, according to the Fiber Broadband Association.

AT&T’s deployment of FWA on the fringes of its fiber network can be seen in Houston suburbs like Conroe and League City, according to Speedtest Insights. These are cities where AT&T’s fiber network does not fully reach – but where it is offering FWA connections. They are also locations where other providers – including Comcast, Ezee Fiber, and others – currently offer internet connections.

AT&T can leverage EchoStar’s spectrum to expand its FWA business

Although 5G operators can use any spectrum band for FWA, midband spectrum like 3.45 GHz (used by AT&T), C-band (used by AT&T, Verizon, and T-Mobile), and 2.5 GHz (used by T-Mobile) form the backbone of today’s 5G-powered FWA services in the U.S. Such spectrum is considered appropriate for covering wide geographic areas as well as providing speedy, high-capacity connections.

AT&T has been slowly growing its midband spectrum holdings. The operator spent around $23.4 billion in the FCC’s C-band auction in 2021. A year later, the operator bought $9 billion worth of 3.45 GHz spectrum in another FCC auction.

Now, AT&T plans to acquire more midband 3.45 GHz spectrum – and 20 MHz of lowband 600 MHz spectrum – from EchoStar, in a deal that still requires regulatory approval. AT&T currently doesn’t use 600 MHz spectrum in its network, which means the company will need to install new hardware on its cell towers in order to deploy that spectrum.

However, AT&T will be able to quickly add EchoStar’s 3.45 GHz spectrum to its existing network via a software upgrade. Meaning, AT&T won’t need to update each of its cell towers with new hardware – an expensive and time-consuming process – in order to put EchoStar’s 3.45 GHz spectrum licenses into use. AT&T officials said that, via a spectrum-leasing agreement with EchoStar, AT&T can add EchoStar’s midband spectrum to AT&T cell sites covering nearly two-thirds of the U.S. population by mid-November 2025.

Since network speeds and capacity are directly related to the amount of spectrum an operator has, the financial analysts at New Street Research estimate that EchoStar’s spectrum will allow AT&T’s network to support an additional 900,000 consumer FWA subscribers on a nationwide basis.

In Houston, AT&T stands to gain 30 MHz worth of EchoStar’s 3.45 GHz spectrum licenses, according to Spectrum Omega. That spectrum would be added to the 80 MHz of C-band and 40 MHz of 3.45 GHz spectrum that AT&T already owns in the market, giving it a total of 150 MHz of midband spectrum in Houston.

According to recent Ookla RootMetrics® drive test data from Houston, AT&T has been leaning heavily on its C-band and 3.45 GHz holdings to supply 5G connections to its smartphone customers in Houston.

AT&T Spectrum Band Utilization Percentages
RootMetrics® Houston drive test results | 2H 2025

Spectrum “depth” is another way to measure AT&T’s spectrum usage. The amount of spectrum in use in an operator’s network often directly relates to the speeds that operator can provide. AT&T used 120 MHz of midband spectrum (C-band and 3.45 GHz, via two-carrier aggregation) in 37.3% of RootMetrics’ tests in Houston in the second half of 2025. The operator used 80 MHz of midband spectrum (C-band) in another 46% of tests. This indicates that AT&T still has some additional spectrum to put into action inside its network for its smartphone and FWA customers.

Fiber, cable and FWA can be applied to the digital divide

A final element in a review of the greater Houston area involves the locations that are still not yet covered by the likes of AT&T, Comcast and others. For decades, various U.S. government programs have sought to bridge this digital divide in Texas and elsewhere.

For example, AT&T’s participation in the FCC’s CAF II program included almost 180,000 locations in rural parts of Texas. Similarly, Charter Communications pledged to cover a wide swath of East Texas via the FCC’s Rural Digital Opportunity Fund (RDOF) rural broadband program.

Today, the Texas Broadband Development Office (BDO) rates most of the counties immediately in and around Houston as 90-100% served by broadband. But counties that are further afield rank lower. For example, Liberty County (just east of Conroe) is listed as 66.4% served by broadband. The FCC’s broadband benchmark was changed to 100 Mbps downloads and 20 Mbps uploads in 2024.

The U.S. government’s newest broadband funding program, the Broadband Equity Access and Deployment Program (BEAD), was recently reworked to put more focus on technologies like fixed wireless and low Earth orbit (LEO) satellites. That’s because those technologies are often cheaper and faster to deploy than fiber.

Texas’ BEAD funding map highlights areas around Houston that the state aims to cover with broadband. The state recently allocated around half of its $1.3 billion in BEAD grants to fiber providers, with the remainder split relatively evenly between fixed wireless and satellite providers. AT&T received $32 million in grants to cover 6,651 locations in Texas with fiber. Comcast didn’t receive any BEAD grants for Texas. 

On a nationwide basis, AT&T has so far received $718.8 million in BEAD grants to cover 141,900 rural locations with broadband. AT&T intends to use fiber to meet those obligations. Comcast, meanwhile, has received $1.36 billion in grants to cover 226,900 rural locations across the U.S. with broadband. Comcast has pledged to meet around 69% of its BEAD obligations with fiber, and the remainder with cable.

According to the financial analysts at New Street Research, U.S. state regulators have so far allocated just 9% of BEAD grants to fixed wireless providers. The bulk (85%) of grants were awarded to fiber operators. Satellite providers like SpaceX and Amazon received 4% of the funding, while cable operators received 2%.

Ookla retains ownership of this article including all of the intellectual property rights, data, content graphs and analysis. This article may not be quoted, reproduced, distributed or published for any commercial purpose without prior consent. Members of the press and others using the findings in this article for non-commercial purposes are welcome to publicly share and link to report information with attribution to Ookla.

| October 8, 2023

Gulf ISPs should help fiber customers upgrade and configure their Wi-Fi routers to deliver faster speeds

Gulf countries improved fiber coverage and adoption by investing in fixed infrastructure, raising entry-level speeds, and making fiber services more affordable. Their efforts paid off, as evidenced by their improved position in Ookla’s Speedtest Global Index™. However, the persistent use of legacy and underperforming Wi-Fi standards in home networks can hamper efforts to provide the best network experience to customers.

Key messages

  • Wi-Fi 4 is still prevalent in the region which limits fiber’s potential. Many customers cannot get close to headline fixed broadband speeds because of the widespread use of Wi-Fi 4. Indeed, more than one-third of Speedtest® samples during Q2 2023 were using this old Wi-Fi standard. That means that a sizable proportion of users are not utilizing broadband services to their full potential.
  • Migrating to modern Wi-Fi standards can bring significant speed gains. On average, customers who used Wi-Fi 5 had a median download speed that was more than five times higher than those on Wi-Fi 4 in Q2 2023. Likewise, the speed over Wi-Fi 6 was 1.2 times faster on average than with Wi-Fi 5. Therefore, fixed broadband subscribers in the Gulf (most of whom use fiber services) with routers that only support Wi-Fi 4 would benefit the most from a CPE (Customer Premise Equipment) upgrade.
  • ISPs should do more to ensure their customers’ routers and smartphones are configured correctly. Even if consumers in the Gulf region own modern smartphones and Wi-Fi routers, they may still unknowingly use Wi-Fi 4 due to device misconfiguration and coverage constraints. ISPs can help educate consumers about how to correctly set up their home Wi-Fi routers and offer solutions to improve their indoor connectivity in order to use the more efficient 5 GHz spectrum band.

Most Gulf countries improved their global fixed broadband speed ranking since 2020

The GCC (Gulf Cooperation Council) region which comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the U.A.E. leads the Middle East in fiber coverage and adoption. Local ISPs, backed by the government, accelerated fiber roll-outs to keep pace with the demand for data services and to ensure universal access to high-speed internet as part of national broadband development strategies. According to the FTTH Council industry body, the U.A.E. topped the global rankings for fiber household coverage, reaching 98.1% in September 2022, a position it has maintained since 2016. Qatar closely followed in the second position with 97.8% coverage.

These two GCC countries ranked ahead of Singapore (96.5%), Hong Kong (91.6%), and China (89.4%). In Bahrain, meanwhile, more than 88% of households were connected to the fiber infrastructure, whereas fiber coverage exceeded 60% in Saudi Arabia and reached 52% in Oman.

According to Speedtest Intelligence®, the U.A.E. leads the Gulf region in median download speeds at 236.67 Mbps in Q2 2023, a number that doubled since Q2 2022. Bahrain saw another story of improvement, with its median download speed reaching 70.17 Mbps, an increase of 46% year-on-year since Q2 2023. ISPs also saw significant improvements in upload speeds. Fixed upload speeds increased by 61% and 40% in Oman and Qatar, respectively, reaching 29.27 Mbps and 73.21 Mbps. Users in Bahrain experienced the biggest jump in median upload speed, which doubled between Q2 2022 and Q2 2023 to 20.37 Mbps.

As a result, most Gulf countries boosted their ranking in the Ookla Speedtest Global Index™. The U.A.E was ranked second in the Speedtest Global Index™ for median download speeds over fixed broadband in June 2023. Other GCC countries improved their rankings as well but trailed the U.A.E.

The telecom regulatory regimes and policies also helped, to different degrees, stimulate competition in the market, raise minimum broadband speeds, and reduce broadband tariffs. For example, in April 2023, Bahrain’s Telecommunications Regulatory Authority (TRA) approved an offer from BNET, the wholesale fixed infrastructure provider, to double the speed of entry-level fiber packages while maintaining the same wholesale prices. In the U.A.E., Etisalat by e& and du increased minimum download speeds to 500 Mbps and offered discounts on higher-tier fiber plans in 2022. 

Wi-Fi 4 is still prevalent in the region which limits fiber’s potential

The choice of Wi-Fi standards and spectrum bands has a direct impact on connectivity quality, throughput, and network coverage. Indeed, Wi-Fi 5 (802.11ac) significantly increases the maximum theoretical throughput speed of the access point to 3.5 Gbps, compared to 600 Mbps supported by the old Wi-Fi 4 (802.11n) standard. 

Wi-Fi 6/6E (802.11ax) supports even faster maximum data rates (up to 9.6 Gbps) and lower latency than earlier generations. It also combines 2.4 GHz, 5 GHz, and 6 GHz spectrum bands and wider channels for better throughput and less interference. Note that achievable speeds in real life will be much lower than these theoretical limits because of signal attenuation, interference, and the hardware and software variety of connected devices.

The rest of the analysis focuses on the most penetrated fiber markets in the region: Bahrain, Qatar, Saudi Arabia, and the U.A.E. We used the percentage of samples that used a particular Wi-Fi standard and frequency band when connecting to the CPE as a proxy for their adoption by wired broadband customers in each country. We assume that most of the results reflect the performance of fiber services given that fiber represents the majority of fixed broadband connections in these four markets.

Our results show that more than one-third of test samples reported using Wi-Fi 4 to connect to the fixed CPE, but this varies considerably by country. Bahrain has the highest incidence of samples that use Wi-Fi 4 and the lowest proportion of Wi-Fi 6. Wi-Fi 4 was more prevalent in the U.A.E. than Wi-Fi 6 (30.8% compared to 17.2% in Q2 2023). This suggests that the ISPs have an opportunity to improve the network experience for nearly a third of their customer base and extend their lead in the speed leaderboard if they can address that CPE speed bottleneck.

The distribution of samples by Wi-Fi standard is largely similar between the U.A.E and Saudi Arabia. The minimum broadband speed currently offered by ISPs in Saudi Arabia is 100 Mbps, while the median download speed on fixed broadband measured by Speedtest Intelligence data was 93.85 Mbps in Q2 2023. This suggests that many customers might still be on legacy, lower-speed plans, but the more likely case is that home Wi-Fi CPEs are limiting speeds in users’ homes. Indeed, 40.2% of Speedtest samples used Wi-Fi 4 in Saudi Arabia, limiting maximum achievable speeds.

Chart of Share of Wi-Fi Samples by Generation in Gulf Countries

Migrating to modern Wi-Fi standards can bring significant speed gains

Consumer-initiated speed tests confirm that users’ experience of network speed is significantly affected by how their devices connect to Wi-Fi access points. The chart below shows the median download speed distribution by Wi-Fi standard used.

Chart of Median Download Speed by Wi-Fi Generation in Gulf Countries

Median download speeds for devices that use Wi-Fi 4 topped out at 37.18 Mbps in Bahrain, and dropped to a low of 28.47 Mbps in Saudi Arabia. Contrary to what some might think, speed improvements were far more pronounced when looking at results on Wi-Fi 4 compared to those on Wi-Fi 5, rather than comparing speeds on Wi-Fi 5 and Wi-Fi 6. Users who connected to Wi-Fi 5 had a median download speed that was more than five times higher on average than those on Wi-Fi 4. While download speeds over Wi-Fi 6 were 1.2 times faster than with Wi-Fi 5.

Wi-Fi 5 users in the UAE had the largest speed lead over Wi-Fi 4 users (6.5x). With Wi-Fi 6, median download speeds more than doubled to 251.68 Mbps for users in Qatar compared to those on Wi-Fi 5. Bahrain and Saudi Arabia were outliers, with speeds largely similar regardless of whether test samples were with Wi-Fi 5 or Wi-Fi 6. This is because these three countries have the lowest reported median download speeds (below 100 Mbps), and many users who consider upgrading from Wi-Fi 5 to Wi-Fi 6 are unlikely to see a difference in their home network performance.

Looking at the performance of the fastest 10% samples in Q2 2023 reveals a more significant potential speed uplift for data-heavy users when using modern Wi-Fi standards. Users in the top 10% of our results experience the best performance, so it is possible to gauge from their results what speeds are achievable with each Wi-Fi standard. To that end, the median download speed of the 10th percentile results on Wi-Fi 4 users across Bahrain, Qatar, Saudi Arabia, and the U.A.E. was 71.60 Mbps, compared to 330.91 Mbps on Wi-Fi 5 and 693.48 Mbps on Wi-Fi 6. Wi-Fi 5 was 2.7x faster than Wi-Fi 4 in Bahrain and 5.9x faster in Qatar, while the speed ratios of Wi-Fi 6 to Wi-Fi 5 ranged from 1.2 in Saudi Arabia to 1.9 in the UAE.

Given the clear performance advantages of Wi-Fi 5, ISPs should encourage customers to migrate from Wi-Fi 4 to Wi-Fi 5 because it will significantly impact the end-user network experience. It’s also important to note that our data confirms that fiber broadband subscribers who continue using Wi-Fi 4 are the most penalized, especially if they subscribe to a service that is advertised as offering hundreds of megabits per second.

Chart of Performance of Top 10% of Speedtest Samples by Wi-Fi Generation in Gulf Countries

The persistent usage of legacy Wi-Fi is likely due to incorrectly configured routers

Huawei and TP-Link are the top router brands reported by Gulf users utilizing Wi-Fi 4. However, their popularity can vary vastly by market depending on the equipment bundled by ISPs with their broadband offerings, as well as the ability of consumers to use third-party routers (some ISPs allow only their own routers). Our data shows that Bahrain and Saudi Arabia have the highest proportion of samples connected to a Huawei CPE. TP-Link routers are most common in Qatar and the U.A.E.

The U.A.E. has the highest proportion of routers from D-Link, Cisco, and less popular brands used with Wi-Fi 4 (nearly 64% of samples reported using ‘other’ manufacturers). This high level of market fragmentation is likely due to users replacing routers provided by their ISP or installing refurbished routers to extend coverage indoors. Such fragmentation complicates the task of ISPs to ensure that their customers use more recent routers or that they configure them correctly to use more modern Wi-Fi standards.

Chart of Wi-Fi 4 Router Market Share by Manufacturer in Gulf Countries

Our research showed that most commercial CPEs in the region introduced since 2020 likely support Wi-Fi 5 (if not Wi-Fi 6). Further, tests also showed that most Android-based smartphones that used Wi-Fi 4 were equipped with Wi-Fi 5-capable chipsets. Therefore, many users in the region are capable of using Wi-Fi 5 but are still on Wi-Fi 4. We believe that misconfigured routers could be the primary cause of such a high prevalence of legacy Wi-Fi 4 technology among Gulf countries.

ISPs can address the factors that favor Wi-Fi 4 and 2.4 GHz spectrum usage, for example, by working more closely with device manufacturers, supporting customers to acquire newer Wi-Fi routers, and correctly configuring them, as shown in the table below. 

Factors that lead to Wi-Fi 4 usage and how ISPs can address them

Legacy equipment
  • Some fixed broadband customers are locked into long service contracts and are not eligible for router upgrades
  • ISPs may not offer newer routers to existing customers whose contracts are automatically renewed
Solutions
  • Encourage existing broadband customers to upgrade to faster fiber packages to benefit from modern Wi-Fi routers
  • Offer customers the option to replace their old Wi-Fi routers for free or for a small fee during their contract
Configuration issues
  • Routers may, by default, use older Wi-Fi standards or diactivate the 5 GHz band
  • Some routers are pre-configured to use the same network name for both the 2.4 GHz and 5 GHz bands, and some devices may not handle this well
  • Some old mobile devices latch to 2.4 GHz (which is more likely used by Wi-Fi 4) on first-run but do not switch back to 5 GHz due to firmware limitations or a hardware/software setting in the router/end-user devices
Solutions
  • Work with OEMs to push firmware and software updates to prioritize newer Wi-Fi standards and the use of 5 Ghz over 2.4 GHz
  • Educate customers about the importance of updating the router’s firmware and smartphone software
  • Preconfigure the routers to have separate names for the 2.4 GHz and the 5 GHz bands
  • Offer routers that can automatically select the optimal Wi-Fi channel and band to improve performance
Coverage and performance issues
  • Distance from CPE, physical obstruction, and interference in the crowded 2.4 GHz band
Solutions
  • Offer Wi-Fi extenders to improve indoor coverage
  • Share best practices with customers on the configuration and placement of the router

Gulf-based IPSs have managed to rapidly grow their fiber footprint and migrate their customers to faster broadband services. However, a substantial portion of subscribers may not benefit from these speed increases due to the prevailing usage of Wi-Fi 4. As many ISPs in the region already offer a minimum fiber speed of 250 Mbps, they should, as a priority, migrate existing customers with legacy Wi-Fi routers to more modern models and educate customers with newer routers on how to correctly configure them. ISPs’ efforts to introduce newer CPEs will help improve the end-user experience, boost global speed rankings in the region, and ensure that their routers are more future-proof as gigabit speeds become more widespread.

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